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It provided for a lump sum to be set aside each year for four years to be redistributed to staff provided certain targets were met.

Last year the payments averaged around €1,200-€1,400 per person before tax.

However, it is understood Chief Executive Christoph Mueller today told staff that until the long-running dispute over pension cuts is resolved, the company will not issue the Greenfield payments.

The Aer Lingus announcement is set to ratchet up tension in the pensions row.

It could draw in groups who have not previously been involved, including staff who are not members of the controversial IASS scheme.

It is unclear whether the productivity payments will just be withheld for SIPTU members of the troubled IASS pension scheme who are set to strike, or whether the payments will also be withheld from the entire workforce.